Gold Prices Hold Steady Amid US-Iran Tensions and Labor Market Reports

Gold prices held steady near $4,060 on Tuesday as investors weighed safe-haven demand against rising Treasury yields ahead of key US economic data. The ongoing US-Iran tensions continued to support gold demand, while higher interest rates limited its upside potential.

Central banks, including the Bank of Korea, are increasing their gold purchases, reflecting a trend of reserve diversification amid economic uncertainty. This week's US labor market reports will be crucial in shaping expectations for Federal Reserve policy and could influence gold's price trajectory.

The World Gold Council reported that total gold demand reached 1,269 tonnes during the second quarter, with central banks purchasing 289 tonnes, a 62% increase from last year. The Bank of Korea announced it would begin purchasing domestically produced gold for the first time in 13 years.